12,300 more SJC gold bars released into the market

On the morning of May 16, the State Bank auctioned 16,800 taels of SJC gold bars for the 7th time and only 4,500 taels remained unsold, equivalent to nearly 27% of the bid size.

According to the operator's announcement, the winning bid price fluctuated between VND88.89 million and VND88.92 million per tael. Accordingly, the "wholesale" price that the enterprise bought from the State Bank was VND1.4 million higher than the price SJC bought from residents and about VND1 million lower than the market price.

The State Bank started calling for bids on April 22, of which 3 sessions were canceled. This was the 4th successful auction and the session that recorded the highest number of participating businesses as well as the volume of gold released to the market.

Thus, in nearly the past month, more than 27,000 taels of SJC gold bars have been released into the market by the management agency.

In theory, bidding is a solution to increase long-term supply to neutralize market demand, thereby helping to "cool down" gold bar prices closer to the world price.

However, recently the market has had "opposite" reactions, meaning that the price of SJC gold bars often turns to increase after bidding calls. Instead of understanding the mechanism of increasing supply in the long term, the price will decrease, many people think that the State Bank selling at high prices will make the market price go up.

Learning from previous "sluggish" auctions, the management agency has loosened the conditions on minimum and maximum bid sizes. According to the operator, this adjustment has helped recent sessions increase both the number of participants and the scale of gold supplied to the market. At the same time, the State Bank's leadership also affirmed that it will increase the frequency of auctions to increase supply to the market.

Unlike the developments after the previous bidding sessions, the price of SJC gold bars this afternoon remained stable despite the metal price on the international market increasing by 30 USD per ounce in the past 24 hours. The gap between the two markets has thus narrowed from 17.5 million to 16.5 million VND.

SJC slightly increased by 200,000 VND per tael in the morning, but then the price of gold bars quickly reversed, falling 200,000 VND lower than yesterday's closing price, down to 87.5 - 90 million VND per tael.

Meanwhile, the price of 24K gold rings increased following the world, 400,000 VND higher per tael than yesterday. This morning, SJC listed the price of plain rings at 75.35 - 77.05 million VND. Bao Tin Minh Chau announced the price of plain rings at 75.9 - 77.3 million VND per tael.

According to the State Bank, over the weekend there were crowds of people gathering at some times at the headquarters of SJC Company, however there were no crowds in other localities and other businesses. Some locations on Tran Nhan Tong Street, Hanoi City, due to the narrow area, had a higher density of people.

The State Bank said it has directed its branches in provinces and cities to closely monitor the gold market and report any queues to buy gold. Given the fluctuations in the international market and the upcoming management and control of the gold market, the regulator recommends that people be cautious when trading to minimize risks.